Federalism and the Economy

The natural resources of every state are different from the others. In a federal system, for example, if a particular state intends to promote tourism, its congress could appropriate bigger budget for that purpose. It could create more tourism police instead. It could incorporate in their school curriculum how to treat tourists and visitors. It could pass laws that are supportive and conducive to tourism.

On the other hand, if it is an agricultural state, its budget could be attuned for its support. It would not pass bigger budget for tourism when there is barely any tourism spots in their territory. That state would rather fund research studies in the field of agriculture and more scholarship funding for students taking agricultural courses and even higher degrees in said field.
The centralized budgetary system and the uniformity of almost all our policies, that we presently have, could turn blind to the peculiarities and potentials found in the different areas of the country. As discussed in Question & Answer No. 10, we should have one law on matters that we are the same, which should be within the jurisdiction of the national government. But on matters that we differ, we should have a tailored policy for that difference, which should be within the “lookout” of the states.
If a state could accurately identify and assist industries with potentials, it will help improve their economy.